India ranks third globally in installed renewable energy capacity, according to a report by Morgan Stanley and data from the Ministry of New and Renewable Energy. The report said the transition would reduce external dependence but that success would depend on how quickly the country localises critical segments such as solar cells, wafers and polysilicon. Officials noted that solar and wind additions have driven most recent growth. The Morgan Stanley analysis also emphasised the need to address manufacturing bottlenecks to sustain momentum. Ministry data showed domestic solar module capacity nearly doubled from 38 gigawatt (GW) in March 2024 to 74 GW in March 2025, while solar cell capacity rose from nine GW to 25 GW over the same period. The increase in domestic manufacturing has improved supply chain resilience and supported larger deployments across states. Analysts said the capacity gains reflect policy support and market demand. Despite the gains, the report observed a heavy reliance on imports for key upstream components. In the financial year 2025 India imported around 35 million (mn) solar modules valued at about 1.6 billion (bn) US dollars, with an estimated 60 to 80 per cent procured from China. These figures underline the gap between module assembly and upstream material production and the challenge of moving up the value chain. The report recommended accelerating localisation to capture value and reduce vulnerability to global supply disruptions. Overall non-fossil fuel capacity has crossed 50 per cent of total installed capacity, reaching 262.7 GW, according to the ministry. Solar and wind account for the bulk of recent additions and continue to shape the power mix as thermal capacity adjusts. Policymakers and industry participants were said to be focused on scaling manufacturing, addressing logistics and improving financing to sustain the energy transition. Policy efforts are concentrated on incentives, technology transfer and investment in domestic supply chains to reduce import dependence.